NEW YORK (TheStreet) -- U.S. markets stumbled on Tuesday after disappointing earnings from Staples (SPLS) and Urban Outfitters (URBN). Small caps relinquished Monday's gains, shedding 1.4% amid a cautious backdrop.
- The Dow Jones Industrial Average was off 0.83% to 16,374.31, while the S&P 500 was 0.65% lower to 1,872.83. The Nasdaq dropped 0.7% to 4,096.89.
- Home Depot (HD) was 1.9% higher after reporting first-quarter earnings of $1 a share, topping estimates by just a penny, as sales came in at $19.70 billion. That trailed the consensus revenue estimate of $19.95 billion.
- Staples plunged 12.6% after posting quarterly earnings per share that missed estimates by 3 cents at 18 cents with revenue falling 3% to $5.65 billion. Analysts, on average, were expecting sales of $5.61 billion.
- Urban Outfitters dipped 8.8% after missing analysts' expectations in its April-ended first quarter.
- Drug developer Ophthotech (OPHT) jumped 24.5% after granting Novartis (NVS) exclusive rights to commercialize one of its treatment outside the U.S.
- In other companies news, Credit Suisse (CS) climbed 0.93% after agreeing to pay a $2.5 billion fine to U.S.authorities for helping Americans evade taxes.
- GoPro, the maker of durable digital cameras that can be used to capture adventure sports, filed for an initial public offering on Monday with a $100 million placeholder. The company, which reported nearly $1 billion in 2013 revenue, will look to list its shares on Nasdaq under ticker "GPRO."
- GM (GM) declined 3.5% after it said it would recall another 2.42 million vehicles in the U.S. and that charges associated with recall-related repairs are expected to tally up to $400 million in the second quarter.
- Key "new tech" stocks were mixed: Netflix (NFLX) and Amazon (AMZN) gained 2% and 1.5%, respectively, while Twitter (TWTR) was 0.94% lower.
- International markets were mixed. The DAX closed down 0.21%, the FTSE was off 0.62%, and the Hang Seng finished up 0.57%. The Nikkei broke a four-session losing streak, closing 0.49% higher on the heels of U.S. gains on Monday.
- U.S. stocks eked out gains Monday as small-cap and tech stocks surged against a backdrop of mixed M&A success, but trading volume was the second lowest on record in 2014 heading into the Memorial Day weekend. Global money managers raised cash holdings to a two-year high this month and said America is the worst place to invest, a recent Bank of America survey showed. This is "a sign of risk aversion and equity bull-run fatigue," noted Howie Lee, an investment analyst at Phillip Futures.
-- By Jane Searle, Andrea Tse and Joe Deaux in New York
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